Radial is a leading provider of integrated e-commerce logistics and omnichannel technology solutions, headquartered in King of Prussia, Pennsylvania (USA). In 2016, Radial fulfilled over 306 million units for its retail customers, across 24 fulfillment centers. Radial is largely ahead of its peers in terms of scale, geographic coverage and breadth of services. In addition to gaining an important foothold in the US, this acquisition brings a distinctive set of expertise and capabilities from the advanced e-commerce market. Radial also offers integrated services such as payment, tax and fraud protection services, fulfillment and customer care for brands and retailers.
The expected normalized annual revenues of Radial for 2017 are forecasted between $970 and $1,020 million. The expected normalized EBITDA is forecasted to be between $65 and $70 million in 2017.
In light of e-commerce growth, the development of parcel logistics is one of the most promising areas in a new digital world. bpost continues to deliver on innovation in this sector with the acquisition of Radial. bpost seeks to capture the fast-growing e-commerce logistics supply chain by enabling a strong cross-border value proposition for its customers. With Radial, bpost will build upon its successful US-based Landmark Global business to scale its presence in one of the largest e-commerce countries and expand bpost’s product offering throughout the entire value chain in e-commerce logistics.
Koen Van Gerven, CEO of bpost, said: “I’m very proud of this acquisition that represents a great leap forward for bpost, promoting us as a leading player in the e-commerce logistics business in the Benelux, Europe and throughout the world. I’m convinced that offering integrated and seamless e-commerce logistic solutions to our US and European customers will help them grow their businesses. The expertise and capabilities of Radial employees are a unique complement to bpost and will help us in becoming a leader in e-commerce logistics. I’m very happy to welcome all Radial employees to our bpost family.”
Matthew Espe, CEO of Radial, said: “Radial represents the gold standard for profitable e-commerce and omnichannel technology arming merchants with the capabilities needed to operate at a global scale. There has never been a more important time when it comes to helping brands grow their online business profitably, especially when reaching their customer base internationally. Joining the bpost family is a critical next step for both companies as we strive to help meet customer expectations on the backbone of industry-leading technology and services.”
Under the terms of the agreement, bpost will acquire 100% of the shares of Radial for an Enterprise Value of $820 million. Strict M&A criteria in the decision-making process were diligently respected ensuring long term value creation for all stakeholders. bpost intends to finance the transaction by using a bridge financing upon closing. The transaction is expected to close in the last quarter of 2017, subject to customary closing conditions.
The strong financial profile of bpost will offer a sustainable, stronger and liquid investment proposition through an optimized capital structure without any stock dilution. The transaction will have a positive impact on the earnings per share as from 2020.
J.P. Morgan Securities LLC acted as financial advisor to Radial for this transaction.
On 2017, October 9, at 9:30 am CET, bpost will host an analyst & investor call webcast presentation to discuss the transaction. Details will be communicated separately.
On 2017, October 9, at 11:00 am CET, bpost will host a press conference at bpost headquarter in Dutch and French with webcasting presentation to discuss the transaction. Details will be communicated separately.
Baudouin de Hepcée (journalists and investors): +32 (0)476/49 69 58
Barbara Van Speybroeck (journalists only): +32 (0)476/51 79 29
Saskia Dheedene (investors only): +32 (0)2/276 76 43
Nicole Messier (US journalists and analysts): +01 518 538 8608
bpost is a leading postal operator in Belgium, offering a wide range of products and services in the mail and parcel related businesses. bpost’s core business is the collection, sorting, transportation and delivery of letters and parcels. Every day bpost staff delivers 8.6 million letters and 175.000 parcels to 4.7 million households in Belgium. bpost and its subsidiaries also develop activities relating to the proximity & convenience business. We are “Always on the move” to bring our clients closer and to make their lives easier. Since 2012, bpost is operating its international parcels activities under the name “Landmark Global, a bpost company”. bpost is listed on Euronext Brussels. In 2016 bpost generated revenues of over 2.4 billion euros.
Radial is a privately held company principally held by investment funds affiliated with Sterling Partners and Longview Asset Management, LLC. Radial is a leading player in omnichannel commerce technology and operations, enabling brands and retailers to profitably exceed retail customer expectations. Radial’s technical, powerful omnichannel solutions connect supply and demand through efficient fulfillment and transportation options, intelligent fraud protection, payments, and tax systems, and personalized customer care services. Hundreds of retailers and brands confidently partner with Radial to simplify their post-click commerce and improve their customer experiences. Radial brings flexibility and scalability to their supply chains and optimizes how, when and where orders go from desire to delivery. Learn how we work with you at www.radial.com.
Forward Looking Statements
This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, impact of acquisitions and divestitures, restructurings, regulatory approval processes, and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. bpost undertakes no obligation to publicly update or revise any forward-looking statements.